Want to trade in the stock market ??? These are the mandatory things YOU MUST HAVE.

As a trader, you have to ensure that your trading calls are backed with sufficient data and proper research. With many traders considering the market as a money-producing machine and looking for quick returns, the probability of sizable losses is higher than ever. Considering this fact, if someone is critical of investing in the stock market, these are the four things one must have before starting

1. Trading Plan/setups

2. Trading Capital (losable capital)

3. Use of system (Technology)

4. Emotion Control

1.Trading plan/Setup :

To be an effective trader you need a trade setup. By having a setup, you keep your trading simple.

A successful trader always has a plan. A trading plan is a decision-making tool for your trading activity.

It helps you to decide what, when, and how much to trade. The most important thing to have before you start trading is a proper strategy.

One should always have a set of disciplines to enter and exit the market. This will help them gain confidence while trading. For this,

traders should research on technical and fundamental analysis; they can learn more about this from the knowledge database of trading websites. However, by following some classic rules of the game, any amateur can rise in their ranks and clock in greater profitability.

2. Trading Capital (losable) :

The most common mistake most traders do is that they invest more than they ought to. The trading market is highly volatile.

Hence, it is always a smart move to protect your money through proper money management. Saving your capital is the most important thing in the stock market.

The priority is to make more rather than lose more. One should always allocate a certain amount of money from their total income to trading, and that should be it.

Trading with money allocated for daily expenditures should always be avoided.

3. Use of system (Technology) :

In the past, traders at the stock exchange used to shout out orders. They would gather around the stock trading area and begin shouting matches.

Fortunately, that is no longer the case, as trading has been made a lot easier.

Nowadays, you do not have to shout orders, and you can easily get the best stocks by

researching online. Using technology to one’s advantage is the key to success.

With the evolution of smartphones, Moreover, research has greatly improved. In the past, people had to look for information in the library, contact companies, and read financial literature. You can now get the information you need about different companies easily. several trading apps are available to help monitor the stock market in real-time.

4. Emotion Control :

Many stock traders lose money. When you study how they act on stock markets, you often find they don’t control their stock trading emotions. This is one of the biggest mistakes any trader or investor can do. Trading is also about managing fear and greed. There will be times when one will make mistakes and lose money, which can subsequently make him/her impatient and doubtful about their strategies. Here, patience is the key to success. No matter what, one should always stick to their plans and strategies.

Another important thing which one should always keep in mind is to never involve emotions in trading. It doesn't matter whether you make money or lose it, there is absolutely no place for emotions in the world of stock trading. A successful trader always keeps his/her emotions in check.

So these are the most important things you need if you are planning to start trading in the stock market.

However, you learn gradually from your own mistakes in the market.

Thank you!